Issuers of Legal Entity Identifiers (LEIs) face a wave applications ahead of next year’s implementation deadline, when the updated regulatory framework comes into being.
Under the requirements, legal entities involved in any reportable financial transaction will have to obtain a mandatory LEI code before the deadline kicks in on January 3rd 2018, otherwise investment firms will not be able to deal for them.
LEIs are a unique, 20-character reference code that is unique to a legal entity that engages in financial market activities.
The Wealth Management Association (WMA) has developed a brief guide covering frequently asked questions to assist members and their legal entity clients.
A range of global regulatory initiatives have recognised the importance of developing unique IDs for any financial transaction.
The use of LEIs, codes registered in a global data system for entities undertaking financial transactions, will be used to help monitor systemic risk enabling regulators and financial companies to measure and manage counterparty exposure, while providing operational efficiencies.